Canada and Britain have a new trade deal in place. The announcement was made at a virtual G20 summit on Saturday. Both sides have found common ground ahead of a Dec. 31 Brexit deadline that would have triggered new tariffs on Canadian exports.
The deal will eliminate tariffs on 98 per cent of Canadian exports to Britain, which is Canada’s fifth largest trading partner with $29 billion in two-way merchandise in 2019.
The two countries began talks in the summer.
The deal means Canadian exports to Britain such as vehicles, beef and seafood won’t be slapped wih tariffs at the start of 2021.
“This is is a fantastic agreement for Britain which secures trans-Atlantic trade with one of our closest allies. British businesses export everything from electric cars to sparkling wine to Canada, and today’s deal will ensure that trade goes from strength to strength,” Prime Minister Boris Johnson said in a statement.
“Our negotiators have been working flat-out to secure trade deals for the U.K., and from as early next year we have agreed to start work on a new, bespoke trade deal with Canada that will go even further in meeting the needs of our economy.”
The deal must be approved by both governments.
The deal with Canada is similar to an agreement reached last month with Japan.